Seneca Partners Limited VCT - June 2018 CONFIDENTIAL
IMPORTANT NOTICE Seneca Partners Limited (Company No. 7196273) (“Seneca Partners”) is authorised and The value of an investment, and any income from it, could fall. You may not get back the full regulated by the Financial Conduct Authority. amount you invest. Seneca Partners Ltd’s Registered Office is 12 The Parks, Haydock, WA12 0JQ. Tax treatment depends on your circumstances and may change in the future. Tax reliefs depend on the Company maintaining its VCT-qualifying status. This advertisement should be read in conjunction with the prospectus to be published by Hygea vct plc (“Company” or “VCT”) which will be renamed Seneca Growth Capital VCT Plc The proposed investments of the Company in smaller companies are considered high-risk. upon the first allotment of New B Shares. A copy of the prospectus will be available at Share prices in smaller companies can fall or rise much more sharply than shares in larger, www.hygeavct.com, or on request by telephone on 01942 271746. An investment in New B more established companies. They also have a higher rate of failure. Shares in Hygea vct plc should be made solely on the basis of information set out in the prospectus. This advertisement, and information contained herein, does not constitute a Past performance of Seneca Partners is not a reliable indicator of future results, and prospectus, but is an advertisement, and this document does not form part of any sale, investors should not rely on any forecasts made about future returns. solicitation or any offer or invitation to buy or subscribe for securities in the company. VCT shares might be difficult to sell. It might take time to find a buyer and an investor might Only the following may receive this promotion: have to accept a price lower than NAV per share. • Non-retail Clients - An eligible counterparty or a professional client as defined by the Details of risks and other important investor information is contained in the prospectus Financial Conduct Authority. relating to the offer without which investment decisions should not be made. If you are • Certified High Net Worth Investors - An individual who is able to provide the required contemplating investing you should take advice from your IFA or other similarly qualified High Net Worth Statement, or a person (or persons) legally empowered to make professional. investment decisions on behalf of such individuals. • Exempt Persons - An exempt person if the financial promotion relates to a regulated We reserve the right to update this document from time to time. activity in respect of which the person is exempt from the general prohibition. Anyone who receives this promotion in error should return it immediately to Seneca Partners Limited 12 The Parks, Haydock, WA12 0JQ. Seneca Growth Capital VCT 2
AGENDA Seneca Partners is a 1. Introduction and the Offer specialist business providing investment, 2. Key Attractions lending and advisory 3. Investment Strategy and Process services to UK based 4. Conclusions SMEs Seneca Growth Capital VCT 3
THE SENECA FAMILY 5 Offices Seneca Partners Limited • Founding company in Seneca family > 60 Staff • More than £100m* AUM Seneca Investment Managers Limited >£600m TOTAL AUM • Liverpool based fund manager • More than £500m* AUM Seneca Finance Limited • Bridging finance provider • Current loan book in excess of £25m* Seneca Property Investments Limited • More than £20m* of property transactions in last year * As at 31 March 2018. Unaudited. Seneca Growth Capital VCT 4
SENECA PARTNERS INVESTMENT TEAM The wider Seneca branded network of companies operates from 5 offices across the North of England and employs more than 60 people. Seneca Partners Investment Team: Management team Tim Murph urphy Richar Ri chard Manl nley ey Ian Curr Ian urrie Richard is a shareholder and CEO of Ian is a shareholder and director of Seneca Tim is a shareholder and director of Seneca Partners and member of the Seneca Partners and member of the Partners and chairs the Investment Investment Committee. He is ACAIB Investment Committee. He is a Chartered Committee. He is a Chartered Accountant qualified and has over 30 years structured Accountant and previous experience with extensive corporate finance and finance and investment experience. Tim includes KPMG, NM Rothschild and Cenkos investment experience. Ian is a director of Fund Managers. Richard has been pivotal Hedley & Co Stockbrokers, Liberty SIPP joined Seneca in 2012 from NorthEdge Capital, where he was a founder partner of in the development of all areas of Seneca’s and a partner of Palatine Private Equity. the business. Other previous roles include business and in its journey from start up to Previous roles include Peel Hunt & Co, Barclays, RBS, Deloitte and HBOS. managing more than £100 million. Apax Partners and Altium Capital. Investment team John hn Davi vies es – Inve nvestmen ent Direc rector Conn nnor or Gr Grimes es – Inves nvestment nt Manage ger Matt Curr urrie e – Invest nvestment nt Executive ve John heads up the growth capital Connor joined Seneca in 2014 from Matt joined Seneca from RBS Structured investment team at Seneca. Previous roles Kleinwort Benson in London where he Finance team in 2017 where he completed include PwC, RSM Robson Rhodes, worked in the Finance and Principal 15 Leverage Finance transactions, being Investment & Advisory teams. At Seneca primarily mid-market private equity deals. Clearwater Corporate Finance and BDO. Since joining Seneca in 2015, John has he has acted on more than 29 EIS growth Prior to that he spent four years with acted on 33 EIS growth capital transactions capital transactions totalling in excess of Deloitte, qualifying as a Chartered totalling more than £28 million. £26 million, leading 12 of these totalling Accountant. At Seneca Matt has been more than £12 million. Connor became a involved in 12 growth capital transactions CFA charterholder in 2017. totalling more than £12 million. Seneca Growth Capital VCT 5
THE VCT OFFER • Seneca Partners have partnered with Hygea vct plc to launch a New B Share class • Seneca Partners has been appointed to manage the New B Share class • Hygea vct plc to be renamed Seneca Growth Capital VCT Plc upon first allotment of New B Share class • New B Share offer capacity £10m (with additional £10m over allotment facility) • Intention to build a diverse portfolio of growth capital investments in UK SMEs • Launched 9 May 2018 – raised £2.1M to date Key benefits of this approach: 1. Access to Hygea’s existing distributable reserves will enable dividends on New B Share class from first year 2. Quicker route to market than launching a Seneca VCT from scratch 3. Tightly controlled cost base in Hygea vct plc and access to existing shareholder base Seneca Growth Capital VCT 6
SENECA PARTNERS – EXPERIENCED GROWTH CAPITAL INVESTORS • Award winning specialist SME investment and advisory business • Existing growth capital funds under management in excess of £50m: • Seneca Growth Capital EIS Fund • Seneca EIS Portfolio Service • First EIS growth capital investment made in 2012 • More than 70 investment rounds across more than 35 companies Seneca Growth Capital VCT 7
OPPORTUNITY: CAPABILITIES WELL MATCHED TO CHANGING LANDSCAPE • Recent VCT rule changes have further restricted types of transactions and companies into which VCTs can invest • Management buy-outs no longer permitted • Growth capital investments into younger companies now a central theme for VCT managers • Whilst many established VCT managers have been forced to revise investment strategies, Seneca Partners’ experience is well matched with the new VCT rules • Since making Seneca Partners’ first EIS investment in 2012: • EIS Growth Capital AUM now >£50m • Invested in 39 companies in more than 70 funding rounds • Achieved 9 exits realising £6.2m with money multiples ranging between 1.08x to 9.7x (unaudited). There have also been 3 write offs with a total of £0.75 million written off. Seneca Growth Capital VCT 8
SENECA PARTNERS – PAST INVESTMENT PERFORMANCE • Seneca’s EIS investment performance in the 5 years ended March 2018: • average NAV growth rate of c. 8.9% p.a. • 9 full and partial realisations with money multiples ranging between 1.08x to 9.72x Mar 18 Average Year Ended Mar 14 Mar 15 Mar 16 Mar 17 Annual growth rate 3.3% 28.5% 0.1% 10.2% 2.5% 8.9% Please Note All performance figures are unaudited Seneca’s past performance is not a reliable indicator of future results The above represents gross performance before the impact of any of our stated fees. After fees average annual growth rate for the 5 year period above is c.7.3% p.a. Seneca Growth Capital VCT 9
FUNDRAISING AND DEPLOYMENT CAPABILITY EIS Portfolio Service • Scaling the funds raised for the New B Share class £60m is crucial to the long term success of the offer. This enables: £50m • follow on investments for existing investee £40m companies • increased diversification £30m £20m • Seneca Partners has a track record of successful fundraising and deployment having raised more £10m than £50m of EIS growth capital in total and more than £38m since March 2015 £0m Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Cumulative Funds raised Cumulative Funds Deployed Seneca Growth Capital VCT 10
Recommend
More recommend
